Stock Market
What is P/E Ratio (Price to Earnings)? — Meaning, Definition & Example
Definition
P/E ratio measures how much investors are willing to pay for each rupee of a company's earnings. It is calculated by dividing the current share price by earnings per share (EPS). A higher P/E indicates investors expect higher growth. Nifty 50 average P/E is typically 20-25.
💡 Real Example
If TCS shares trade at ₹3,500 and EPS is ₹100, the P/E ratio is 35x — meaning investors pay ₹35 for every ₹1 of TCS earnings.
🇮🇳 P/E Ratio (Price to Earnings) in Hindi / हिंदी में
P/E अनुपात — P/E अनुपात मापता है कि निवेशक किसी कंपनी की प्रति रुपये कमाई के लिए कितना भुगतान करने को तैयार हैं। वर्तमान शेयर मूल्य को EPS से विभाजित करके गणना की जाती है।
P/E Ratio (Hinglish) — P/E ratio batata hai ki investors company ki har ₹1 ki earnings ke liye kitna pay karne ko ready hain. Share price / EPS se calculate hota hai.
❓ Frequently Asked Questions
What is P/E Ratio (Price to Earnings) in simple words?
P/E ratio measures how much investors are willing to pay for each rupee of a company's earnings. It is calculated by dividing the current share price by earnings per share (EPS). A higher P/E indicates investors expect higher growth. Nifty 50 average P/E is typically 20-25.
Can you give an example of P/E Ratio (Price to Earnings)?
If TCS shares trade at ₹3,500 and EPS is ₹100, the P/E ratio is 35x — meaning investors pay ₹35 for every ₹1 of TCS earnings.
What is P/E Ratio (Price to Earnings) meaning in Hindi?
In Hindi, P/E Ratio (Price to Earnings) is called P/E अनुपात. P/E अनुपात मापता है कि निवेशक किसी कंपनी की प्रति रुपये कमाई के लिए कितना भुगतान करने को तैयार हैं। वर्तमान शेयर मूल्य को EPS से विभाजित करके गणना की जाती है।